Customer Finance Programs Key to Increasing Sales

While studies show that spending on technology is on the rise again, there's a reason you have not heard a collective sigh of relief from the software industry. While many budgets are once again allow the purchase of enterprise software, hardware and peripherals, there is no doubt that buyers of today are smarter, savvier and more selective than ever.

Even if you have loosened the purse, the competition is at all times. It is no longer enough to offer a software solution that meets the needs of potential clients, or even to offer the best price. Today, smart sellers are constantly looking for ways to stay one step ahead of the competition.

While sales growth is always part of a competitive strategy of companies, software companies often overlook a simple method for achieving this goal - making it easier for customers to buy.

One option growing in popularity among software vendors is to provide a customized financing program that provides hassle free financing solutions for prospective clients. Apart from the "one-stop shopping", customers can reap the other benefits of funding that make it easier for them to commit to technology purchases, including:

Financed by 100 percent - Many finance companies offer finance 100 percent of the cost of software maintenance contract, which does not require prepayment. Because customers do not need to come up with a down payment can make a purchase immediately, rather than hold up the sale with a "wait and see" mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more funds to activities that generate revenue.

Improved management of cash flow - The financing of the software, your customers can save capital to reinvest in their business and improve the accuracy of the budget through fixed monthly payments. Funding also makes it easy for customers to access multi-year budgets to pay for the benefit of your software over its useful life.

Flexible payment structures - Customers can optimize project budgets by taking advantage of flexible payment structures are available through funding to maximize the return on their investment. For example, finance software, customers can ramp up payments to match the revenue generation of a new project is the technology that uses software-funded.

While the funding provides a clear advantage to the buyer when a program is well designed, the list of advantages for software developers, distributors and resellers can be even more beneficial.

Improved Customer Relations

As mentioned above, the financing packages add value for customers, enhancing their purchasing power, providing more flexibility and provide convenience. It also increases customer satisfaction through the leverage of their budget to obtain the total technology solution - which could include software, hardware, service, support, integration and training - and not only parts and pieces could not afford through an outright purchase.

Shorter sales cycles

From the standpoint of sales, any customer who expresses an interest in a product that looks like a good lead. However, there are many times when the question of how to pay for the new software does not allow the sale from happening. Time lost in hopeless values ​​can be eliminated if funding is part of the sale, such as ability to pay directly into account in the equation. Furthermore, many finance companies are now offering fast, easy credit and documentation procedures, so you can complete a sale quickly and avoid costly delays in processing.

Another advantage is that software needs as discussed in the sales process, the finance specialist can work with the chief financial officer or accountant to determine what alternative funding and payment plan best suits the needs of business and cash flow .

Direct financing customer can also save software vendors millions of dollars annually by reducing the number of days the sale is excellent. Consider a company with sales quarter cash $ 50 million. On average, it may take 45 days to collect payment. Suppose the interest rate of 6 percent, 45-day delay in payment results in an exercise cost of $ 371,204. If the same numbers run with a leasing program that generates payment within 2 days, the carrying cost drops $ 82,253, saving the company more than $ 288,951 for the quarter of businesses.

The Big Picture

Overall, the equipment financing programs can:

Create larger, more profitable sales faster;

Increase Account Control;

Improving sales efficiency and productivity;

Lower days sales outstanding;

Improve cash flow;

Differentiating your company from its competition; And

Provides solutions for your customers.

Global Concerns Affecting Gold Price

Last week, gold managed to climb above $ 1,750 per ounce mark on the back of coordinated movement of central banks to boost liquidity. When the Federal Reserve has allowed central banks to exchange their currency into U.S. dollars, the dollar fell and gold benefited.

Despite the rise in gold prices, Chinese demand continues to be equally high. Despite the fact that the Chinese government keeps very quiet about gold reserves, believed that China has over 33,890,000 ounces of gold as reserves and that is growing rapidly. In 2007, China overtook South Africa as the largest producer of gold in the world and China has made the most of this cost advantage.

The Chinese, however, is also in need of monetary support after The People's Bank of China made it easier for banks to lend more money, cutting the amount of reserves banks must hold. During the past week, China's central bank had to intervene in currency markets, but for once, is not acting to keep the Renminbi against the weak dollar. The blame belongs to the housing bubble in China which seems ready to burst. The good news is that Chinese efforts to support the market seems to function; But the bad news is that investors are starting to realize that Reminbi can fall and rise.

Also underpinning the gold price was the continuation of the market by central banks. South Korea is the latest bank to buy gold in an effort to diversify its foreign reserves and protection against financial instability. A number of banks have disclosed information about the continuation of the market in gold; These include Thailand, Russia and Bolivia. Despite the fact that gold seems to have lost its position today as an asset a safe haven, the increased demand from central banks say gold prices.

EU leaders will meet in Brussels this morning (12.08.11) to try and agree on a deal to tackle the debt crisis Euro Zone. Most investors and analysts have described this "do or die" moment for Europe. It is now evident that any solution must be reliable and durable; The markets will no longer be fed drips and drabs of false hopes. One way or another, EU leaders should announce a viable plan.

Chancellor Merkel and President Sarkozy is seeking renewal of agreements between countries that impose fiscal discipline on automatic penalties for those who overspend. However, other sanctions previously included in the contracts and those who clearly were not met, so how much difference will it really?

After the Standard and Poor put all eurozone countries on credit watch seems that the main focus is to restore market confidence and therefore EU leaders appear to be hardening their positions. However, if the EU is to survive long term must be improving solidarity and collective fiscal union.

The ECB (European Central Bank) has cut its key interest rate at 1% ahead of the summit of the European Union. Unfortunately, this is a big part of the ECB itself and has no power to do what is necessary to stop the deterioration of the debt crisis. Italy and its debts are too big to be rescued by other governments that instead the focus continues to circle back to whether or not the ECB will have to come back and print money. Of course, gold will benefit from this, as people seek to invest in gold again in search of safe haven assets and protection against inflation.